After Trump Tax Cuts, Workers' Benefits Boom — So Why Not Make Cuts Permanent?
S E E D E D C O N T E N T
Benefit Boom: On the left, the idea that the tax cuts signed into law by President Trump benefited no one but "the rich" is almost a mantra. False, of course, but somehow the media continue to repeat it.
Google "Trump tax cuts of the rich" and you get about 6.67 million hits. So it's quite an item of discussion out there.
And it's an increasingly common talking point among the Democrats' far-left-of-center representatives as the midterm elections loom. Why, it's almost like they're spreading "fake news" to the voters or something.
The truth is, as a new report shows, average American workers are benefiting not solely by having their incomes boosted by tax cuts, but by having bigger benefit-packages, too.
Rather than focus on the abstract benefits of the tax changes, Americans for Tax Reform has listed literally dozens of companies that are delivering more benefits to their workers, thanks to tax cuts. They range from very small businesses to major multinational corporations.
Take Firebird Bronze, an Oregon-based foundry, for instance.
" We are a small manufacturing business casting artwork for artist in bronze we have 9 employees and because of the tax cuts and the current business friendly climate we are for the first time offering employees health care insurance costing our company 40k per year," the company said.
Meanwhile, following tax cuts, Express Scripts in Missouri announced, "The company will ... create a $30 million education fund for employees' children. The fund will assist with paying for college and vocational training."
Retailing giants Wal-Mart and Lowes' employees will provide a special benefit up to $5,000 for families that want to adopt children.
Lowes says it will also "be expanding its benefits package for full-time workers to include paid maternity leave for 10 weeks, paid parental leave for two weeks ... and faster eligibility for health benefits."
Fast-food giant McDonald's, which along with Wal-Mart is one of the nation's largest employers, is extending a raft of benefits to some 400,000 of its workers.
As ATR notes, even McDonald's "employees who work just 15 hours a week, receive $1,500 worth of tuition assistance every year per year. The money can be applied to community college, trade schools, or a traditional 4-year university for employees or their family members."
LHC Group, a Lafayette, La.-based health services company, sent out an email to its workers from the CEO detailing exactly why things were changing so workers would understand.
"I want to point out the positive impact the 'Tax Cut and Jobs Act' will have for our company and for each of you," the email begins.
"As a result of this legislation, our company's effective tax rate has been reduced from roughly 41% to a projected range of 29-30% for 2018. Because of our reduced tax burden, we will be able to make important investments in our company, including additional investments in our greatest asset — our people. But rather than making a small, short-term financial overture, we have decided to make meaningful investments in 2018 that will positively impact our employees — in a sustainable and long-term fashion."
In addition to most workers seeing more take-home pay, the company will help pay even more of the burden for fast-rising insurance premiums, which have increased at double-digit rates under ObamaCare.
Again, that means more money in workers' paychecks.
We hope you get the picture. The list of companies goes on and on, and the number of employees that benefit go into the tens of millions. Tax cuts have made everyone richer by enlarging the economic pie.
In case you've forgotten, the amount of tax relief was significant.
As CNSNews.com reminds us: "The Tax Cuts and Jobs Act , which was opposed by all Democrat members of Congress, did several things, such as change the tax brackets to lower rates for individuals, nearly doubled the standard deduction, and eliminated the mandate to buy health insurance, among other reforms."
And it also cut taxes on U.S. corporations, which, at 35%, faced the stiffest tax burden in the world before Trump's cuts. Today they're at 21%.
As a result of these tax cuts, companies have more money left for investments , not just in equipment, but in workers' training, education and personal lives.
In a faster growing economy with a tightening labor market — and that's where we are right now, with 4.1% GDP growth and a 3.8% unemployment rate — companies have much greater incentives to retain good workers. So, with the higher profits from tax cuts, they boost pay and benefits.
Tax Cut Growth Elixir
This, by the way, is why when presidents of both major political parties have cut taxes over the last 100 years, economic boom times have followed. And it happens not some of the time, but all of the time. It's happening now.
There's no question that American workers have it better today than they did a mere two years ago. Their wages are higher. They're getting fat bonuses, some for the first time. And they're receiving better, more diverse, benefit packages than ever before.
Knowing this, when their politicians return to their districts to campaign for upcoming midterm elections, voters should ask them a simple question: Will you now vote to make the tax cuts permanent?
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That "boom" is them falling flat after the initial, small, bonuses. Corporations took about .1% of the money they made off the tax cuts, paid out bonuses to the employees, then.....nothing.